Globalization and Financial Market Contagion: Evidence from Financial Crisis and Natural Disasters

Simplice Asongu

MPRA Paper from University Library of Munich, Germany

Abstract: With financial globalization, investors can gain from diversification if returns from financial markets are stable and not correlated. However with volatility spillovers, increase in cross-market correlations exist as a real-effect and are not taken into account for asset allocation and portfolio composition. This chapter assesses financial contagion from two recent trends in the world economy: the global financial crisis and the 2011 Japanese natural disasters (tsunami, earthquake and nuclear crises).

Keywords: Contagion; Financial Markets; Natural Disasters (search for similar items in EconPapers)
JEL-codes: F30 G10 G15 (search for similar items in EconPapers)
Date: 2013-01-15
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Citations: View citations in EconPapers (5)

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Related works:
Working Paper: Globalization and Financial Market Contagion: Evidence from Financial Crisis and Natural Disasters (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:56803

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